As foreigners made net purchases of more than 1 trillion won on the main board, the KOSPI closed up more than 1%. With the first talks between the United States and Iran set for the 11th, expectations appeared to outweigh caution.
On the 10th, the KOSPI closed at 5,858.87, up 1.40% (80.86 points) from the previous session. The index opened at 5,876.12, up 1.70% (98.11 points) from the previous session, and at one point during the session rose more than 2%.
Foreign investors led the rise. While individuals were net sellers of 1.2 trillion won and institutions 290 billion won, foreigners alone made net purchases of more than 1.1 trillion won.
Expectations grew that instability in the Middle East could ease following a truce between the United States and Iran. On the 8th, the United States and Iran agreed to a "two-week truce," and their first talks are set for the 11th in Islamabad, Pakistan.
Lee Kyung-min, a researcher at Daishin Securities, said, "Uncertainty remains depending on the course of negotiations, and passage through the Strait of Hormuz is still restricted under Iran's control, but ahead of the talks, expectations are outweighing caution."
U.S. President Donald Trump was also reported to have asked Israeli Prime Minister Benjamin Netanyahu to refrain from airstrikes on Lebanon.
On top of that, gains stood out in sectors expected to post better earnings in earnings season. In particular, with Samsung Electronics having earlier released record results, expectations are high for large-cap semiconductor stocks. Samsung Electronics closed up 0.98%, and SK hynix also rose 2.91% at the close.
Kang Jin-hyeok, senior researcher at Shinhan Investment & Securities, said, "As Israel proposed peace talks to Lebanon, instability in the Middle East appears to be calming," adding, "After Samsung Electronics released its results, SK hynix also lifted semiconductor stocks on expectations of strong earnings, and the KOSPI rebounded in a 'W' pattern."
As the possibility of continued negotiations in the Middle East was raised, expectations for reconstruction also flowed in. As a result, construction stocks such as GS Engineering & Construction and DL E&C were strong.
The KOSDAQ closed at 1,093.63, up 1.64% (17.63 points) from the previous session. The KOSDAQ saw its intraday gains widen.
Institutions led the KOSDAQ market. While individuals and foreigners were net sellers to the tune of about 80 billion won and about 5 billion won, respectively, institutions alone were net buyers of 93 billion won.
Kang said, "Investor sentiment rebounded on the outlook that uncertainty in the Middle East will diminish," adding, "While large caps such as secondary batteries and Robotics were mixed, overall sentiment was strong."
As large-cap semiconductor stocks rose, semiconductor equipment stocks listed on the KOSDAQ also ended higher. Wonik IPS, Park Systems, TES, and YC advanced.
Optical communication-related stocks such as Taihan Fiberoptics, SOLiD, and RFHIC, which are expected to benefit from the artificial intelligence (AI) semiconductor market, were also strong.